Authors Neel Hajra 2010 License Unless otherwise noted

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Pub. Pol 671: Policy & Management in the Nonprofit Sector Lecture 21: Social Enterprise continued Neel Hajra

Next Week Monday: Guest lecture by Kevin Thompson (updated readings in syllabus) Wednesday: Wrap up social enterprise, examine future relationship of nonprofit and for-profit sectors

Final Paper Topic to be released later this week Due Thursday, April 29 at midnight (last day of exams period)

LET’S LIVE THE DREAM!

Ground Rules A “management” exercise that sheds light on the real challenges of social enterprise Work FAST Solid Note-taking – please submit to Neel by end of this week We’ll examine and discuss your collective experiences and results next week Your results will be shared with class

Step 1: Describe Your Services In More Detail What kinds of services do you offer? (don’t forget your mission and metrics) What is the scope of your services (#’s, geography, etc. ) Who participates in your services? TIME: 10 minutes

Step 2: Describe Your Funding Sources Assume you receive funding from all four common sources (individual, corporate, foundation, local government) and no earned income Assign a percentage of total support for each source (try to reflect what you think would be typical for an organization like yours) TIME: 5 minutes

Step 3: Build an Org Chart for Your Nonprofit Positions in addition to Board and Executive Director Salary for each position Responsibilities for each position $250 k in total salary

Step 3 Examples Typical functions: Program delivery Strategic management Financial management Fundraising Marketing/outreach I. T. (e. g. , computer systems, phone systems, websites, etc. ) H. R. (e. g. , hiring, payroll, policies, benefits, volunteer management, etc. ) TIME = 10 minutes

OH SNAP… You project a major loss in funding!

Step 4: Formulate a social enterprise model for your organization What activities can generate earned revenues? Who are your customers? What sort of fees and fee structure will you use? What percentage (minimum 50%) of your expenses do you hope to cover through your earned income? TIME: 15 minutes

Step 5: Identify what changes to your org structure are necessary to support your new business model Do you need new staff/skills? Do you need to re-assign or eliminate existing staff/skills? What about your board? What about your volunteers? Estimate the cost difference (if any) between your old org chart and your new one TIME: 10 minutes

Step 6: Identify what changes to your infrastructure are necessary to support your new business Facilities Communications I. T. systems and software Etc. TIME: 10 minutes

Step 7: Identify what changes to your donor (investor) base are necessary to support your new business Do you need more or new kinds of supporters? Will you retain existing supporters? What you need different levels or kinds of support? TIME: 5 minutes

Step 8: Identify any other steps you need to take to effect the conversion to a social enterprise model Coordinating with stakeholders? Planning? Changing internal culture? Training? Marketing and Communications? And many other potential areas… TIME: 5 minutes